Resource use Efficiency in Carrot Production and its Policy Implications in the Punjab Pakistan

Resource use Efficiency in Carrot Production and its Policy Implications in the Punjab Pakistan

Abstract

The study estimates technical, allocative and economic inefficiencies in carrot production by employing the stochastic production frontier approach and the duality theory. The impact of determinants of technical, al locative and economic inefficiencies has also been addressed. Carrot production is concentrated in two districts, Sheikhupura and Kasur in Pakistan’s Punjab, and this study is based on data collected from these two districts. Farmers are, respectively 54, 2I and 63 per cent technically, allocatively and economically inefficient. Our results reveal that a large potential exists that can be explored to increase the income of vegetal* farmers in the study area. The elimination of technical and economic inefficiencies will generate an amount of 409.9 and 594.5 million rupees per year, respectively, in the province. Education, farming experience and average distance from input-output markets are found to be highly significant in order to improve technical, allocative and economic efficiency, indicating that investment on education and improve-ment of physical infrastructure (i.e., construction of roads) are the most critical areas that can help to eliminate inefficiencies in carrot production. This implies that investment in these sectors could play a critical role in expanding the production of carrots and to improve farm income by improving resource use efficiency in carrot production.

The Applied Economics Research Centre (AERC), University of Karachi, was established in 1973. The major functions of the Centre are policy oriented Core/academic Research , Contract Research for Clients, and post-graduate teaching and providing advisory services to the government.